Herald Sun Feature: Cash on The Rise
For years, it’s felt like Australia was steadily moving towards a cash-free society, with the speed and convenience of digital payment methods driving a sharp decline in cash use.
But new data shows that attitudes have changed, with the Herald Sun reporting in a recent article that our nation’s cash use has increased for the first time since 2007.
So what’s behind this trend? The Money Collective was part of the conversation about what’s driving it – and what more people using cash more often means for financial wellbeing.
More than a payment method
The article outlines a variety of reasons for our return to cash: rising costs, card surcharges, and concerns around digital reliability.
It also highlights that at the same time more people are choosing to use cash, access is becoming limited as ATMs and bank branches close.
But cash is more than just a payment method: it’s a way to see what you’re really spending, making abstract amounts feel more tangible. It helps us actually notice when we’re making a purchase, rather than just mindlessly tapping our cards or devices on autopilot.
And both of these things are important in times of financial pressure.
As our co-founder, Darlene Neu, shared in the article:
“People are very fearful of interest rates and cost of living increases and are looking to make their money go further by understanding their money and ensuring they are being more deliberate with it.
It is healthy to have cash in our society as back up for digital system failure and hard back up for trade and barter in communities. It also gives people the feeling of choice and freedom.”
The importance of choice and freedom is something we see every day in our work.
Rather than choosing one system over another, financial wellbeing is about helping people feel informed, capable and optimistic about their money – however they choose to access it.
Supporting better financial outcomes
Of course, this uptick in cash usage doesn't mean Australians are turning away from digital payments altogether. It does, however, highlight a growing desire for people to feel more intentional and secure around how their money is managed.
For some, that might look like using cash to set clearer boundaries around spending. For others, it might simply mean having access to it whenever they need it.
From a big-picture perspective, it reinforces the importance of maintaining a financial system that is inclusive, resilient and responsive to people’s needs.
Because as we see every day, when people feel confident in how they engage with money – whether that’s tapping a card or using cash – they are better placed to make decisions that support their long-term financial wellbeing.
Read the full article here: ‘It’s here to stay’: Cash use rises in Australia for first time since 2007
Blog article by:
MEL PEARCE
Financial Wellbeing Consultant and Co-Founder
The Money Collective